DLF Ltd Dispute Over CCI Penalty : New Bench to Decide

The Competition Appellate Tribunal (Compat) has said a new Bench will decide the DLF Ltd case wherein the India's largest real estate company has challenged CCI’s (Competition Commission of India's) Rs. 630 crore fine on it &  the final hearing has been adjourned to July 18, 2012.

The DLF Ltd had challenged the CCI directive on various grounds, including the jurisdiction of the case, the basis for determining relevant market & dominant position and not being served with show cause notices before the order was passed.

The Compat Chairman, justice Mr. Arijit Pasayat, (Who is retiring on May 9, 2012) said, '' The proceedings that a new bench formed under the new chairman, who is yet to be appointed, would take a decision on the case. since the bench is not sitting post May 9, it was not possible to pass an order at this stage and adjourned the final hearing on the matter to July 18, 2012"

Apart from justice Mr. Arijit  Pasayat,  2 other members Mr. Rahul Sarin and Mr. Pravin Tripathi are part of the bench.

Compat also denied the plea of DLF Ltd to put its order of March 29, 2012 in abeyance till the next date of hearing.

Passing an interim order, the tribunal had sent the draft of the modified terms & conditions to the CCI asking it to pass an order under Section 27(d) of the Competition Act.

Compat is conducting daily hearings of the DLF Ltd plea challenging Rs. 630 crore fine imposed on it by fair trade watchdog CCI after finding the real estate major guilty of abuse of the dominant market position.

On August 12, 2011 CCI imposed the fine on DLF Ltd for alleged abuse of its dominant position and passed a ‘cease & desist’ order over unfair conditions imposed on the buyers of its flats.

2012 August, CCI had passed another order in a separate case wherein it asked DLF Ltd  to ‘cease &  desist’ from misuse of dominant position but did not impose any fine.

These orders followed inquiries into complaints filed by the flat buyer associations’ of 2 separate DLF Ltd projects in Gurgaon, DLF Park Palace & The Belaire, alleging delays in the project and increase in the number of floors than planned earlier, among other things.

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